Cannabix Technologies Closes Non-Brokered Private Placement

Executive Summary

• Cannabix Technologies Inc. closed a non‑brokered private placement of 1,400,000 units at CDN$0.50 per unit, raising CDN$700,000 in gross proceeds.
• Each unit consists of one common share and one non‑transferable warrant exercisable at CDN$0.65 per share for up to 24 months, with an acceleration clause tied to a triggering price event.
• Net proceeds are earmarked for manufacturing inventory, labour, general & administrative expenses (including investor relations) and working capital.

Key Details

• Units Issued: 1,400,000 units at CDN$0.50 per unit → Gross proceeds: CDN$700,000.
• Unit Composition: 1 common share + 1 non‑transferable warrant per unit.
• Warrant Terms: Exercise price CDN$0.65 per share; exercisable for 24 months from issuance. Acceleration right if CSE share price ≥ CDN$0.75 for 10 consecutive trading days – warrants may expire 30 calendar days after Company notice.
• Use of Proceeds: Funding manufacturing inventory, labour costs, general and administrative expenses (including investor‑relations activities), and unallocated working capital.
• Regulatory Exemption: Offering relied on NI 45‑106 Listed Issuer Financing Exemption; units not subject to resale restrictions under Canadian securities law.
• Related Party Transaction: CEO purchased 126,000 units; transaction exempt from MI 61‑101 valuation/approval thresholds (≤ 25% of market cap).
• Finder’s Fees: CDN$7,360 paid in cash; 14,720 finder’s warrants issued (each for one share at CDN$0.65, 24‑month term, subject to acceleration clause).
• Investor Participation Waiver: Existing investor with contractual participation right until May 15 2026 waived the right for this offering.
• Material Change Report: Company expects to file a material change report within 21 days prior to completion of the offering as required by MI 61‑101.

Notable Quotes

• “Rav Mlait, CEO – ‘The successful close of this financing provides us with the capital needed to advance our manufacturing and operational initiatives while maintaining flexibility for future growth.’”